Understanding the Local Impact of the Federal Transition in Charles County

Posted by: Economic Development Team on Wednesday, September 3, 2025

Charles County’s proximity to Washington, D.C. has long made it a hub for federal employment. According to the Census Bureau’s 5-year American Community Survey, nearly one in every four workers in Charles County is employed by or connected to the federal government, whether directly as an agency employee, as a federal contractor or subcontractor, or as active-duty military. Given this reliance, the Charles County Economic Development Department (EDD) and Charles County Government moved quickly when the federal government began its transition earlier this year to evaluate potential impacts on our community, economy, and workforce.

 

Survey Purpose and Participation

In response to the transition, the EDD launched a Federal Transition Impact Survey in February, inviting federal workers, business owners, and residents to share their experiences to understand how the transition affected the local level. The goal was to better understand how the federal transition is affecting Charles County at the local level.

  • The survey remained open for three months and gathered 232 total responses:
  • Approximately 36% were federal employees or contractors
  • Approximately 15% were business ownersApproximately 49% were residents

The insight gained has already informed updated resources, support strategies, and forthcoming programming designed to meet the evolving needs of Charles County.

 

Key Findings from the Survey


Impact on Businesses

Of the 35 businesses that responded to the survey, many reported significant financial stress related to federal contracts that ranged from delays and cancellations to changes in scope. This uncertainty has had a ripple effect on operations and growth plans.

  • Expansion plans have been postponed.
  • Hiring has slowed or, in some cases, stopped entirely.
  • Based on survey results, the services industry (e.g., restaurants, hotels, consulting firms, salons, etc.) suffered the most, with over 200% more reported impacts than any other sector.
  • 63% of impacted business owners cited issues related to federal contracts as a top concern.

Business respondents also expressed a need for:

  • Financial Assistance
  • Networking Opportunities
  • Workforce Development Programs


Impact on Federal Workers

Federal workers made up over a third of respondents by category. Of the 84 who responded:

  • 42 reported being directly impacted due to layoffs, reduced hours, transfers, or mandatory return-to-office mandates.
  • An additional 10% shared concerns about job security or future employment, reflecting broader instability in the federal employment landscape.

Survey responses highlighted a growing demand for:

  • Networking Events
  • Employment Services
  • Job Fairs


Impact on Residents

Nearly half of all survey respondents were residents, many of whom are connected to federal employment through a spouse, parent, or household member.

  • 50% of residents reported direct impacts, most commonly through job loss, reduced income, or economic strain within the household.

Top concerns included:

  • Job/income loss (200% higher than other concerns)
  • Uncertainty about the future
  • Instability, benefit cuts, and inflation

As Charles County continues to adapt to this transition, EDD remains focused on supporting our businesses, federal workers, and residents. Future events, programs, and resources will reflect the feedback and priorities shared by respondents in the survey. For more information and the latest updates, please visit the Government Transition Resources web page.

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